Chile Plans To Set Up First Mega Sustainable Aviation Fuel Factory, To Decarbonise Airline Industry

Chile is setting ambitious targets to produce sustainable aviation fuel (SAF) by 2030 and utilise this eco-friendly fuel for half of its aviation needs by 2050, according to a government report.

Aviation is one of the fastest-growing contributors to greenhouse gas (GHG) emissions, fuelling global climate change. It accounts for 2-3 per cent of global CO2 emissions annually.

If the aviation industry as a whole were a country, it would be among the world's top 10 carbon-polluting nations. A return flight from London to New York emits more carbon emissions than the average person in 56 countries would produce in an entire year.

The "2050 SAF Roadmap" report, presented at an aviation conference in Santiago by Fernanda Cabanas, programme coordinator for Chile's "Clean Flight" project, outlines the country's plan to decarbonise its airline industry. With air traffic expected to double by 2040, SAF is seen as crucial in achieving Chile's decarbonisation goals.

SAF has similar chemistry to jet fuel, but is a clean substitute for fossil jet fuels. Unlike jet fuels which is derived from crude oil, SAF is produced from renewable sources such as agricultural waste, municipal solid waste, and forestry residues.

SAF can be blended with conventional jet fuel to reduce emissions by up to 80 per cent without requiring modifications to aircraft engines.

Cabanas emphasised the significant role SAF will play in Chile's efforts to achieve net-zero carbon emissions, stating that "more than 50 per cent of carbon emissions reductions are going to be done through SAF."

While no specific production estimates are available for the planned plant by 2030, Cabanas highlighted the challenges facing the industry, including limited supply and high production costs, resulting in SAF being three to five times more expensive than traditional jet fuel, as per Economic Times report.

To address these challenges, Chile is engaging with local forestry, agriculture, and hydrogen industry representatives to assess potential raw material supplies for SAF production. A comprehensive study on the feasibility and economic projections of SAF production in Chile is expected within six months.

Meanwhile, the United States is also stepping up efforts to promote SAF production, with President Joe Biden's administration set to unveil a preliminary climate model for a SAF subsidy programme.

These subsidies aim to increase SAF production in the US to 3 billion gallons (1 gallon = 3.785 litres), significantly higher than its current output of 15.8 million gallons.